IHT on Property.

Geoff-Chris

My grandfather is looking to pass on the property that i currently reside in with my mother to myself.

trying to find the best way to minimise the inhertence tax that we will need to pay. His overall total estate is much higher than the nill rate tax band. This has left me with a few questions.

1. after the 7 years will we be exempt of all IHT?
2. if he doesnt survive 7 years is there a gradual reduction in percentage of IHT that will need to be paid?
3. Do i foot the possible bill, or does it come from other funds in his total estate?

silvercar

Has your grandfather lived in the property ever? (he may still do?) If he bought a property for your mother and you to live in and never lived in himself then, as Jimmo says, there would be a CGT bill to pay. As there is no CGT on death, it may be better for him to retain ownership at present (sorry to be brutal).

If this is the ancesteral home and he has lived there for a number of years the CGT bill would be reduced and it may be worth considering.